MReport November 2017

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TH E M R EP O RT
F
ive years ago, the mort-
gage industry was under
siege. Foreclosures were
up, home prices were
down, overseeing of default
practices were under scrutiny,
and regulatory enforcement and
the associated rules were signifi-
cantly up—as were fines.
It was at this time that
MERSCORP Holdings, Inc.
(MERSCORP) made critical
changes—ushering in a new era
for the company, one that is built
on learning from the challenges of
the past and forging a new way
forward. These changes touched
every aspect of the Company,
including an enhanced focus
on data accuracy and transpar
-
ency, aggressive litigation defense,
improved communications with
Members and a strengthened
senior team and Board.
MERSCORP is the owner and
operator of Mortgage Electronic
Registration Systems, Inc. (MERS).
MERS acts as the mortgagee on
behalf of lenders and assigns on
approximately 75% of all residen
-
tial mortgages. MERSCORP
operates the MERS® System, an
electronic database that tracks the
changes in mortgage servicing
rights and beneficial ownership
for these mortgage loans. But the
Company has had its fair share of
critics—bringing a tangible threat
in the form of potential financial
damages and litigation costs, but
more concerning, requested rem
-
edies that could have eliminated
the value of MERS as a whole.
Perhaps the most significant of
the challenges MERS faced at the
time was proving the valida-
tion of their legal underpinning
through the courts and working
through all the enhancements and
gaps within their system with
members, regulators, and state
Attorney Generals, plus ensuring
their data was accurate, secure,
and working as intended.
"With litigation challenges
rising, heightened regulatory over-
sight, and a damaged reputation,
it was a difficult environment.
We had to quickly strengthen
the Company internally while
overcoming numerous external
threats," Bill Beckmann, President
The Rise
of MERS
Forging Ahead Through
Forward-Thinking
FEATURE
By Brianna Gilpin
Having navigated the legal system, a majority investment,
and making it through the 2008 foreclosure crisis, the
executives at MERSCORP are experienced, ahead of the
game, and ready to share their knowledge.